Achieving Consistency In Forex Trading: Strategies For Singapore Traders

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Achieving Consistency In Forex Trading: Strategies For Singapore Traders – Here’s the thing, I know there are many trading strategies out there, and it can be overwhelming for you as a trader.

What strategies should you trade? Which ones do you focus on? Which strategies are best for you? What are the pros and cons of all these different strategies? There are many questions in your head and I understand.

Achieving Consistency In Forex Trading: Strategies For Singapore Traders

Achieving Consistency In Forex Trading: Strategies For Singapore Traders

That’s why in today’s lesson, I want to share with you the 4 main types of Forex trading strategies out there.

The Power Of Consistency In Forex Trading

I’ll walk you through what it is, how it works, the pros and cons, and how to decide which strategy is best for you.

For different markets, they move by different amounts every day. For example, the EUR/USD tends to move about 55 pips per day. For blue chip stocks, it tends to move about 1% to 2% per day. So various markets have their own intraday volatility.

As a day trader of those markets, your job is to capture the volatility of the day. If EUR/USD moves around 55 pips per day then as a day trader, you might be trying to average 25 out of 55 pips on one day.

That’s what I mean by intraday volatility. And you do that by being biased on the higher schedule usually. I’ll explain this one a bit.

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And due to the fact that you are trading on the lower time frame, markets tend to move faster because each candle is painted once every 30 minutes for the 30 minute time frame, once every 5 minutes for the 5 minute time frame.

It is not possible to be trading 40, 50 markets. That’s why, as a day trader, you usually focus on anywhere from 3 to 7 markets. That’s about it. That’s pretty much the most you can handle at any one time

Let me explain to you how capturing the intraday volatility by being biased on the higher timeframe works.

Achieving Consistency In Forex Trading: Strategies For Singapore Traders

For example, you noticed that the NZD/CHF on the Daily time frame, the higher time frame, is in a downtrend. The market is in this resistance area (grey area), and you have several price rejections in this resistance area:

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This gives you bias as a day trader, so you don’t want to be long at this point. Because in the higher timeframe, the price resists and the market is in decline.

Moreover now, the market has given you clues that it is rejecting higher prices. Check out the top wikis here:

Using this information you have, you want to short the markets. You will go to a lower schedule to search for a record.

The multiple price rejections you saw earlier in the higher timeframe are pretty much this entire section over here:

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As a day trader, you will notice that this market is now consolidating in this support area:

You could be thinking that a higher time frame is in decline, the price is resistance, this support area is likely to break, let me look for opportunities to short. Maybe you could look to shorten the analysis of that low swing.

This could be another opportunity to short. Hope this gives you an idea of ​​how intraday traders work. They are usually biased on a higher schedule, then recorded on the lower schedule.

Achieving Consistency In Forex Trading: Strategies For Singapore Traders

Because as a day trader, you have plenty of trading opportunities and you can be trading anywhere from 50 to 100 times a month. And if you have an advantage in the markets 50 to 100 trades will be enough for your advantage to play out over time.

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The downside is that day trading can be stressful. It’s stressful because you’re watching the markets all the time, you’re glued to the screen.

You always have to be aware of any potential news coming out, anything that might affect your trades, when the next trade setup is coming in, etc.

This is something that many day traders neglect. For example, let’s say you have a $100,000 trading account. You make 5% per month, on average per year. That’s about $60,000.

But you could also be working full-time elsewhere, making around $6,000 a month, which is almost $60,000 a year, similar to your day trading effort. And you probably work fewer hours and it’s less stressful.

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This is the opportunity cost you have as a day trader. Because if you trade for the day, you would lose the opportunity to work somewhere else or make income through other means.

Let me show you what one swing is. For example, the market is in the range. One swing could be buying near the lows, and when the market moves up one swing higher, you exit near the highs.

Otherwise, the market could be in a trend with higher highs and higher lows. So one swing in the market could be buying near the lows and exiting near the highs.

Achieving Consistency In Forex Trading: Strategies For Singapore Traders

As a swing trader, you will typically trade off the 1-Hour timeframe and above, perhaps the 2-Hour or even 4-Hour timeframe.

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Since you are trading off this advanced time frame, you can trade more markets because the charts are only painted once every 4 hours on a 4 hour time frame. You can trade anywhere between 20-40 markets, it’s possible.

Now let me share with you what swing trading looks like on the chart and how you actually “predict” the end of the trending move in a trending market.

If you pull out the 50 MA, you will see that this market is in a healthy uptrend where the market tends to pull back towards the 50 MA and it also tends to pull back to support previous turned into opposition, and then back from there.

Your goal is to catch that one swing. And the beauty of swing trading is that you don’t have to put up with all the hassle that comes along with it.

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You will use a tool called Fibonacci Extension. So in an uptrend, plot the Fibonacci Extension from the swing low (1) to the swing high (2), and draw it back down to the swing low (3).

Once you’ve done it, you’ll notice that there are three levels of price projections to look at – the 1.27, 1.618 and 2.0 levels.

From swing low to swing high and let’s say this distance is 10cm. You only take 10 cm, multiply by 1.27 and you get this figure over here:

Achieving Consistency In Forex Trading: Strategies For Singapore Traders

The same goes for the 1.618 and 2.0 levels. That’s how you get your figures at those levels to get these different price projections.

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To what level do you pay attention? To be conservative and to have a greater chance of exiting with a profit, you want to try to target the 1.27 extension. That is the most conservative measure.

And if you want to give your trade a little more room to run, 1.618 is another possibility. Here are a few techniques you can use to give you an idea of ​​where the trend move might end.

You will take the Fibonacci Extension tool, plot from a swing low to a swing high, pull back to the swing low. And in this case, the price even retested back to the 2.0 level:

But again, there is no way to tell if it is going to reverse from the 1.27, 1.62 or 2.0 level. Generally, the more conservative approach is between 1.27 and 1.62. This is a technique to give you an idea of ​​where to exit the trade for maximum profit.

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You’ll notice that this market fluctuated a bit, between these highs and lows, and then the market came down to this support area:

Let’s say you have an opportunity to go long. As a swing trader, where do you exit the trade? Well, this is a little different because now it’s not a trending market anymore. It’s more of a variety market.

In a range market as a swing trader, you want to exit your trade before opposing pressure enters. Now ask yourself, where will opposing pressure come in? Where would the vendors come in?

Achieving Consistency In Forex Trading: Strategies For Singapore Traders

If you look at the chart, sellers could potentially enter this area where previous support could become resistance:

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This is a potential area to look to catch one swing in the market. In this case, your one swing will be this, buying from this low and exiting near this high:

If you are good, you can make money in most quarters. Why most quarters? Because compared to day trading, you don’t get as many trading opportunities for swing trading.

You need time for your trades to play out. If you are good and have an edge in the market, you can make money in most quarters. Part-time trading is possible because you don’t have to be glued to the screen all the time.

For example, if you trade off the 4-Hour schedule, you can check the charts once every 4 hours, and you can trade it part-time.

Steps To Creating Your First Trading Strategy

You won’t be able to ride trends because as a swing trader, you’re just going to keep trading one swing. You are going to exit the trade before the other pressure enters.

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